As we await the June 30, 2013 decision from Hess, the following are some observations I have made as I piece together the Falcon puzzle.

1.) I found the following article interesting where Chief executive Philip O'Quigley is quoted as saying:

"John is my chairman and, as I said, he wrote the strategy. It's very much the John Craven model, (and) Falcon's model ... is actually to sell. We're not going to become an oil and gas producing company in unconventionals."

Here's the link to the article: Falcon Oil & Gas looks to repeat Cove story in shale

Observation 1: Knowing the current Hess model is to become an exploration & production company, does Falcon plan to sell to Hess? If so, Hess will need to bring a sizable amount of cash to the table when making an offer to buy. As we've all read from previous posts on this forum, Hess is currently selling assets to generate a significant amount of cash for what might be this very purpose.

The following are two press releases communicating this fact:

Hess Closes Sale of Interest in ACG Fields to ONGC Videsh

Hess Announces Sale of Its Interest in Russia

2.) There was a sale of a private placement of Falcon Australia stock made back in May of 2010 with options for additional equal shares with an expiration date of June 4, 2013.

Observation 2: I'm wondering if the expiration date of June 4 had anything to do with Hess requesting an extension to their decision for the 5 well drill program? If they were going to buyout Falcon, they would need to know the total number of shares that were purchased, plus the number of options exercised for additonal shares of private placement Falcon Australia stock. This will not be known until after June 4, 2013.

This of course relates only to the Australia asset. We also have the assets in Hungry and the Karoo in South Africa.

I trust everyone keeps their eyes on the prize, soon to hopefully come our way.

Exciting times, these are.